Linking credit card to UPI will promote exponential rise in card acceptance: ISG
Fintech company In-Solutions Global Ltd (ISG) anticipates a rise in credit card issuance and
issuance and transactions as issuers start to enable linking of RuPay credit cards to Unified Payments Interface (UPI)
following the Reserve Bank of India's (RBI) approval of credit card payments for the UPI network.
ISG stated in a statement on Tuesday that linking credit cards to UPI will result in a 30-fold increase in the acceptance of credit cards,
with 21 crore UPI QR terminals being able to accept credit card payments via UPI, as opposed to the current PoS (Point of Sale) terminals infrastructure of 70 lakh terminals.
The Reserve Bank approved the linking of credit cards with the UPI last month, making it possible for more people to use the well-liked platform for payments.
Currently, UPI speeds up transactions by connecting users' debit cards to their savings or current accounts.
Customers will link their credit cards to UPI for the benefit of earning reward points and protecting their bank account
from frauds, it said, which will have a positive impact on the adoption and usage of RuPay cards.
The rise of UPI as a mode of transaction can be assessed by the fact that UPI transactions rose by 7.7% in October to 730 crore.
The total value for the month stood at more than ₹12.11 lakh crore.
Moreover, as per a research by FIS, a financial services technology provider, around 76% Indians prefer using UPI during checkouts when shopping online.